Fed’s Rosengren Stands Firm on Need for Gradual Rate Hikes
- Boston chief sees inflation closer to 2 percent in early 2018
- Says delaying gradual pace risks shortening economic recovery
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Federal Reserve Bank of Boston President Eric Rosengren stepped up his argument to keep the U.S. central bank on track for additional gradual interest-rate increases, warning against being too sensitive to short-term economic data.
Answering questions from the audience after delivering a speech in Montreal, Rosengren said inflation will probably be “much closer to 2 percent” a few months into 2018 as the impact fades from notable pricing changes for mobile phones and certain pharmaceuticals that have helped keep levels low this year.